We're just getting our hands on a new report about the president's finances and there's new reason to think he might be taking the JPMorgan Chase debacle personally.

Also ahead, a radioactive discovery about the iconic Kodak camera company that once had a secret stash of nuclear bomb making material in a basement.

We want to welcome our viewers in the United States and around the world. I'm Wolf Blitzer. You're in the SITUATION ROOM.

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BLITZER: CNN has confirmed that the FBI is launching a preliminary inquiry into the JPMorgan chase debacle. The CEO, Jamie Dimon, personally apologized to shareholders today for the mega bank's $2 billion trading loss. He appeared to save his job and his very fat paycheck at the same time.

Our senior legal analyst, Jeffrey Toobin, is standing by for some legal analyst on what's going on, but let's go to CNNs Poppy Harlow. She's in Tampa. That's where the JPMorgan Chase annual shareholders meeting has been going on. So, what happened there today, Poppy?

POPPY HARLOW, CNNMONEY.COM: Well, Wolf, Jamie Dimon, the chairman and CEO of JPMorgan Chase kicked the meeting off, taking the issue head-on, the $2 billion massive trading loss blunder by the bank. This meeting could not have come at a worst time for JPMorgan just a few days after that loss became public.

Jamie Dimon taking full responsibility saying this never should have happened. He also said that changes in policies, procedures, management are happening at the bank to try to get a handle on this. However, two important things to note, Jamie Dimon will keep his $23 million pay package that was approved overwhelmingly. Over 90 percent of the shareholders voting for that. He will also remain CEO and chairman of the bank despite some effort to oust him as chairman by some shareholders.

The bigger issue here is, is this bank too big to manage. If someone like Jamie Dimon who even President Obama has called one of the best bankers on Wall Street could suffer this loss, what does this mean for the system systemically? Does this put us at risk like we were in 2008, and that comes down to the issue of Dodd-Frank and Wall Street reform?

It's something that Jamie Dimon addressed head on today in the meeting. No cameras allowed in, but we do have audio of what Dimon said. Take a listen.

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VOICE OF JAMIE DIMON, CEO, JPMORGAN CHASE: We all want better, smarter, and stronger regulation that's based on facts analysis. Second, as I wrote my letter and I quote, we agree with the intent of the Volcker rule that intent is to eliminate pure proprietary trading and to ensure market is done in a way that doesn't jeopardize the institution or its clients.

The bottom line is that however unfortunate this issue is, we do what we always do -- admit our mistakes, learn from it, and fix them. I'm confident when we're done here, we'll be an even stronger company.

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HARLOW: It's important to note, Wolf, that risky trades are still being made and keep in mind, this move, this loss happened in the arm of the company that is meant to manage risk, to prevent against things like this happening. This didn't happen in the investment banking arm. This happened in the chief investment office and that's a big concern and a big question for shareholders.

BLITZER: Well, at that shareholder's meeting and you're there covering it, Poppy, what are the folks who are inside listening to Jamie Dimon, what did they have to say?

HARLOW: Well, it was a mixed bag. You had some come up to the microphone and really log Jamie Dimon for his success. Up until this point, he has been clearly the best risk manager on the street guiding this firm through the financial crisis. You had others speaking out against him.

I want you to take a listen to three people that were in the meeting that we spoke with right after.

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UNIDENTIFIED MALE: It seems like the $2 billion loss should open their eyes to the fact that Mr. Dimon is not on top of everything.

UNIDENTIFIED MALE: What it shows is that Jamie Dimon and Chase are pushing for weak financial rules that allow banks to continue -- speculating that continue the risk-taking, the continue abuse of practices that harm the economy and that really are strongly against the public interest.

UNIDENTIFIED FEMALE: So, obviously, they did not learn from that mistake. They're still making the same mistake and engaging in these risky activities. It might not be in the housing or mortgages (ph), but it's the same thing.

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HARLOW: So, you do have that shareholders frustration. Again, as I said it was a mixed bag. But, Wolf, it's very important to point out something here. This is a $2 billion contained loss within the bank. Could it grow? Yes. Could it shrink? Yes. We don't know for sure yet. What we do know is this is America's biggest bank with $2 trillion in asset.

So, this to them is a small -- relatively small amount money. They are expected to be profitable this quarter. They are expected to make $18 billion this year alone in profit. One senior banking analyst I spoke with said that is more than any other bank in America, more than Goldman Sachs, Bank of America, and Morgan Stanley combined. So, you got to put it on perspective -- Wolf.

BLITZER: We certainly are. Thank you, Poppy. Poppy's in Tampa for us.

Let's get to the legal fallout, though, from the JPMorgan Chase mess as the FBI now starts looking at to what went wrong. Let's bring in our senior legal analyst, Jeffrey Toobin. Jeff, potentially what laws, potentially, may have been violated if any?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, you know, Wolf, that's a hard question and I don't think I have the answer at this point. This does not look, at least, on the surface, like any crimes took place, and I can understand given the magnitude why the FBI is taking a look, but just because the FBI is looking, it doesn't mean that there was some sort of fraud that took place.

And at least as far as what's the information that's public, this money was lost. It didn't go into someone's pocket. So, in that respect, it doesn't look like there is a culprit out there who is an obvious criminal suspect, but that's why the FBI is investigating is to see if there was any fraud, any false statements or any theft of this money.

BLITZER: Because I asked the question A, because I'm curious what law is out there potentially that could have been violated, but also because of the criticism of the federal government and the aftermath of the collapse in 2008 of Lehman Brothers and so many other financial institutions that no one, really, was seriously prosecuted in connection with the billions, if not trillions of dollars that were lost then.

TOOBIN: Well, that remains one of the big, big issues coming out of the financial collapse that started with Lehman Brothers in 2008 is where are the criminal prosecution. So, here, the justice department is at least taking the first step of looking to see if there is a case to be made. I think it's interesting that it's the justice department, not the Securities and Exchange Commission.

The Securities and Exchange Commission has been even more criticized even by federal judges for simply accepting settlements where banks and bankers don't accept any sort of culpability for what went on. The justice department has generally exercised a firmer hand, but you're certainly right.

No principal figures who were involved in the 2008 collapse have been prosecuted or certainly gone to prison. Here, an investigation is starting, but that is a long, long way from anyone being prosecuted and much less sent to prison.

BLITZER: Yes. The SEC has started an investigation, by the way, of its own, but now, the FBI and the justice department, that takes it to a whole new level. It's going to be a serious investigation.

TOOBIN: And, when the two are investigating, when the SEC is investigating and the Department of Justice, the Department of Justice always takes precedence because they're the ones who have the potential ability to put people in prison. That doesn't happen with the SEC.

BLITZER: They can impose a fine, if you will, and get some money out of that, but that's a different matter than a criminal investigation. All right. Jeffrey, thanks very much for that.

John Edwards' corruption trial broke for the day just a little while. The anticipation has been building for his daughter, Cate, to testify. Let's check in with our senior correspondent, Joe Johns. He's in Greensboro, North Carolina. I take it didn't happen today. What are you hearing, Joe, about the defense witness list?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, Wolf, the defense is apparently pretty much reserving the right to throw in the kitchen sink here at the end of the trial. The defense basically said in court today that they're reserving the right to call, for example, John Edwards to the stand, even his mistress, Rielle Hunter, to the stand.

A lot of people thought she was off the list talking to some of the legal people inside the courtroom today. They said it could be a ploy to keep the government guessing. It could also be a reflection of a disagreement on the defense team, even with John Edwards, himself, who happens to be a trial lawyer.

All of this as sort of thrown timing into doubt of the trial even as to whether and when Cate Edwards, the daughter of John Edwards, might take the stand.

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JOHNS (voice-over): For years, Cate Edwards has mostly been at her father's side. In 2004, she actively campaigned with her father on his unsuccessful campaign for the Democratic presidential nomination. That year, Cate Edwards became the first family member of any of the Democratic candidates to state that she was in favor of legalizing same-sex marriage.

Again in 2008, she was there, lending her support as her father ran for president. Then, as John Edwards became embroiled in a paternity scandal that would eventually end his quest for the nomination, and while her mother, Elizabeth, fought a battle against cancer, it was Cate who became the family's public face, speaking from the heart at her mother's funeral in 2010.

CATE EDWARDS, JOHN EDWARDS' DAUGHTER: Some of you may know, Emma, Jack, and I ended every conversation with our mom by saying "I love you more" and she always respond no, "I love you more," and as you can imagine, none of us ever won that battle, but today, I have the honor of being the last to say, mom, I really, really love you more.

JOHNS: Edwards now 30 went to Princeton then graduated from Harvard law. Some suggesting she has been helpful in preparing her father's defense. In 2011, she married her longtime boyfriend.

And now, as her father fights to stay out of jail, she's been the loyal daughter at his side almost every day for over three weeks, sitting just a few feet behind him in court, the two occasionally exchanging glances and smiled with each other.

KIERAN SHANAHAN, FORMER FEDERAL PROSECUTOR: Cate is a real victim in all of this. She lost her brother when he was young. She lost her mom to cancer. Her dad is one of the most, you know, reviled man in America right now. And there she is, sitting behind him. I think that speaks volumes, and I think the jury probably would look forward to hearing what she has to say.

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JOHNS (on-camera): So, Cate Edwards could still take the stand tomorrow. We just don't know on the stand.

All afternoon today was ex-FBI agent, Jim Walsh, who said he followed the money and found a trail of $70,000 that apparently went directly from an Edwards' benefactor to Rielle Hunter, the mistress, and bypassed any middle man and this could occurred long after John Edwards got out of the race for president which undercuts the government's case that this was all about saving John Edwards' political career. Wolf, back to you.

BLITZER: All right. Joe, thanks very, very much. We'll check back with you tomorrow.

President Obama has just released new information about his own finances. We're learning his daughters helped to make some serious money. We'll explain.

And only hours after the new French president was sworn in, he rushed to leave the country. We're going to tell you what's going on.

And it was an unforgettable car crash, but the driver can't remember a thing. (COMMERCIAL BREAK)

BLITZER: Jack Cafferty is here with the "Cafferty File" -- Jack.

JACK CAFFERTY, CNN CONTRIBUTOR: This is a little disconcerting. Drones are not just for fighting the war on terror in the Middle East anymore. They may be watching you. As more and more of these unmanned aircraft pop up over U.S. soil, they may be used to spy on Americans.

There's an air force document that says if unmanned drones accidentally capture surveillance footage of Americans, they can keep the information for up to 90 days and analyze it. Where's that in the constitution? The U.S. military and the government aren't supposed to conduct surveillance of Americans on U.S. soil without consent.

But if they accidentally capture you on video, well, that's OK. They can, apparently, hang on to that material in order to determine if you're a terrorist. There's no question that spying on Americans without a warrant could and should raise some serious red flags. But when you allow something like the Patriot Act, then the law of unintended consequences is sure to follow.

Make no mistake, drone use is expanding here at home. Regulators have approved the use of drones for dozens of law enforcement agencies and universities, including the Department of Homeland Security and local police departments. These drones can be used for law enforcement, for fire fighting, for news coverage and monitoring wild life or to spy on American citizens.

Lawmakers from both parties have asked the FAA to answer questions about privacy to make sure the public knows that these things are being used and why. And experts predict the use of drones domestically will increase as more of the technologies brought back from places like Afghanistan, Pakistan and Yemen.

Here's the question. Should drones be used to spy on Americans? Go to CNN.com/CaffertyFile and post a comment on my blog or go to our post on the SITUATION ROOM's Facebook page. One of the things they're using them for, Wolf, is to patrol the border with Mexico, which is probably a good use.

I'm not sure, though, use them to flyover American cities and look down on us, folks, as what founding father --

BLITZER: Well, they have all those closed-circuit TVs on the highways and the roads and the cities --

CAFFERTY: That's true.

BLITZER: A lot more in London than they have here, but we're catching up. I think, you know, pretty interesting (ph) you're going to be seeing no matter what you do.

CAFFERTY: Well, that's a disconcerting thought.

BLITZER: I know.

(LAUGHTER)

BLITZER: Thank you.

President Obama is revealing new information about his personal finances. The report released just a little while ago. Our White House correspondent, Brianna Keilar, is joining us with some details. Brianna, what do we now know?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Hi there, Wolf. Well, this happens every mid-May, and we do know from this latest financial disclosure that the Obama family is worth somewhere because we get ranges between about 2.5 million and $8.5 million.

We've learned that President Obama has treasury bills valued between about half a million dollars up to a million dollars, treasury notes between -- valued between $1 million and $5 million, and that he has a checking account at JPMorgan Chase where there is somewhere between half a million and a million dollars.

JPMorgan Chase, Wolf, of course, making news for that $2 billion loss last week. And then, a lot of his earnings, and this has always been the case coming from books. He makes, of course, $400,000 a year as president, but also from his book "The Audacity of Hope," his more recent -- one of his more recent books, between $50,000 and $100,000.

Then, from his memoir "Dreams From My Father" earnings from last year being between $100,000 and $1 million was actually down from the year before, Wolf, and then, between $100,000 and $1 million from "Thee I Sing: A Letter To My Daughters." That is donated to a charity that benefits veterans' families.

And also, Wolf, there will be another book coming out at the end of the month, "American Grown" by Michelle Obama. It's about the White House garden, and that, the earning should now will go to the national park foundation which is the official charity of the national park service -- Wolf.

BLITZER: So, he's doing all right. The family is doing --

KEILAR: Doing all right.

BLITZER: What about the Vice President Joe Biden and his family? They released their financial disclosure statement as well.

KEILAR: Yes. He's doing all right. He has a number of accounts that are valued significantly less and his assets less than the president's number of accounts, investment funds, insurance policies, valued between, most of them, between 1,000 and $15,000, but there's really one item that's getting a whole lot of attention on his financial disclosure and it's under the gift list.

He accepted a gift of what's called the cricket watch from one -- I don't even know if I'm pronouncing this right, Wolf, (INAUDIBLE) Finland, the value, $800, and according to the vice president's office, this is something that he accepted from the owner of a small jewelry store while on an official visit to Finland.

And when you look at the website for this Vulcain cricket watches, a number of presidents have worn these, and it's sort of a tradition that they've been presented to presidents. So, Vice President Biden here, but also, something that caught my eye, Wolf, Vice President Biden has a significantly better interest rate on his home loan than President Obama.

He refinanced and his is at 4.625, the Obamas, for their property in Chicago, 5.625 percent.

BLITZER: Yes. I think he could probably get a better deal.

KEILAR: I think he could.

BLITZER: The president has a lot of treasury bills and a lot of treasury notes. So, he's basically a pretty conservative investor right now. He's trying to keep his money safe, which a lot of people, I think, are trying to do as well. All right. Thanks very much for that, Brianna.

Two murders on the site of a highway. Police say a fake police officer may be pulling over cars and shooting the drivers.

And the government is stepping up the fight against the disease that affects millions. A decade from now, could there be no more Alzheimer's?

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BLITZER: A new plan to defeat Alzheimer's in only 13 years. Lisa Sylvester is monitoring this and some other top stories in the SITUATION ROOM right now. What's going on, Lisa?

LISA SYLVESTER, CNN CORRESPONDENT: Wolf, the government is stepping up efforts to fight the disease that affects more than five million people. It unveiled today what's being called an aggressive agenda to find effective prevention and treatment approaches by 2025 laying it all out on a website, Alzheimer's.gov.

President Obama's proposed budget next year also has a $100 million increase for anti-Alzheimer's efforts.

And two people have been killed on the side of a Mississippi highway. And authorities are worried a fake police officer pulled them over then shot them. The incidents took place about 55 miles apart, and the victims didn't know each other. Police are advising people to pull over in well-lit, crowded areas or call 911 to verify it is a real officer.

Defense secretary, Leon Panetta, says he is taking new steps to ensure F-22 fighter pilots are safe. Many pilots have gotten sick flying the jets and reports symptoms that suggest that they're not receiving enough oxygen.

The Pentagon says they're now mandating all F-22 flights fly close to landing spot, speeding up the installation of back-up oxygen systems, and requesting a monthly report about progress in solving the problem.

And if you are watching this with at least three people, chances are one of you have sleep walked. The Journal Neurology found that out of 19,000 American adults, almost 30 percent have sleepwalked at some point.

Researchers found no difference between men and women, but that it did decrease with age. People who live alone may sleepwalk without even knowing it. So, (INAUDIBLE) -- Wolf.

BLITZER: Yes, it's an amazing story, but that Alzheimer's research, I was at a dinner here in Washington the other night and the amazing research that's going on to deal with Alzheimer's right now is simply mind blowing, if you will, and they are on the verge of some major breakthroughs right now. They just need some money to fund the research. It's really critically important. Breathtaking almost.

SYLVESTER: I want to give that e-mail address again. I want to make sure that I get it right this time. It's Alzheimer's.gov. Alzheimer'.gov. So, for our folks, I'm sure there are many of our viewers that are going to be very interested in this. That's the new website, Wolf.

BLITZER: Every family nowadays has someone who's been affected with Alzheimer's, dementia, and this breakthrough is really, really critical. We're going to work on the story and update our viewers on it here in the SITUATION ROOM. Thanks very much, Lisa, for that.

The new president of France was sworn in today, then he high tailed it right out of the country. We're going to tell you what was so important. Where did he go?

And the new first lady of France isn't married to the president of France. How she's breaking traditions even by French standards.

And the company that gave us Kodak moments had a secret. The material used to make nuclear weapons stashed in a basement.

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BLITZER: The new president of France is capping his first day on the job by discussing the European debt crisis in Germany. President Francois Hollande had a tough time getting to Berlin to meet the German Chancellor Angela Merkel. The first plane he boarded was struck by lightning, so he had to return to Paris and take another flight and it all happened only hours after his inauguration.

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BLITZER: Hollande was sworn in today as the first Socialist president of France in almost two decades. He's promising to take a new approach to the financial mess across Europe right now. Joining us now from Paris is CNN's Richard Quest. Richard after today's pomp and circumstance the new French president Hollande immediately flew off to Germany to visit with the Chancellor Angela Merkel. So what does that tell you about the state of the European economic crisis in and of itself?

RICHARD QUEST, CNN CORRESPONDENT: It tells you that it's very serious, that the franc Franco-German relationship is crucial to the center of the eurozone and the European Union and I think most important of all that President Hollande of France and Chancellor Merkel have different views on the way forward. Hollande now wants more growth policies very similar to those seen in the United States. Angela Merkel still believes that there has to be a rigid austerity if Europe is going to get rid of its large deficits and move forward. We have, remember in Hollande a social Democrat, a Socialist, if you like, who wants to turn France to the left.

BLITZER: And on that point, Richard, he's a Socialist as you point out to a lot of folks here in the United States, that's sort of a bad word. So should Americans be concerned about Hollande's policies towards the United States?

QUEST: No, absolutely not. He's a socialist, but he's a pragmatist. He wants the sort of policies in many ways that Democrats would be looking forward to. He wants you know more labor controls. He wants to have better protections. He wants trade unions. He wants trade protections, all those sort of things, but most important of all, today's inauguration was about education, it was about growth, it was about getting unemployment down and what he's also calling for and maybe some of the viewers watching today will sort of have a shudder down the back, he wants higher taxes on the rich, those paying -- earning more than a million euros. (INAUDIBLE) for this one, Wolf, he wants a tax of 75 percent on those incomes over a million euros.

BLITZER: Well, he's a socialist and that's what a lot of socialists do. Thanks very much, Richard; Richard Quest reporting for us from Paris.

The people of France are trading one very high-profile first lady for another, but the new fist lady is rather different than Carla Bruni Sarkozy (ph) in one big way. She's not married to the new president of France. Here's CNN's Hala Gorani.

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HALA GORANI, CNN CORRESPONDENT (voice-over): She is France's first, unmarried premiere dame. Valerie Trierweiler is the girlfriend of President Francois Hollande, but she prefers the term companion. Their affection for one another was evident election-eve, a relationship that began in 2005 while they were both with their former partners.

CAROLINE LAURENT-SIMON, REPORTER, FRENCH ELLE MAGAZINE (through translator): They've known each other for a very long time Valerie Trierweiler because of "Paris Match" (ph) and before that she was with another paper. She has always been a political journalist. She followed the Socialist Party for "Paris Match" (ph) so they've known each other for at least 20 years. GORANI: A feisty, political journalist, the twice-divorced mother of three gave up her career so she could actively campaign for Hollande and now she has some big shoes to fill, size 38 Luberta (ph) peeped-toe pumps, to be precise, singer, super model and outgoing first lady Carla Bruni Sarkozy (ph), has always fashioned to the spotlight. But that could be out of character for France's new first lady who says she will keep her day job.

UNIDENTIFIED FEMALE (through translator): She wants to stay a normal woman. She says herself that she has no family wealth. She has three children, three adolescents who she still looks after and for her it's crucial she remains independent, especially financially independent with regards to her husband. She is not one to sponge off the state so for the first time in France we could have a first lady who is a working woman.

GORANI: But working as a political journalist when you're in a relationship with a government official, no less the president, could be viewed as a conflict of interest. Even still it wouldn't be the first time in France. The former foreign minister, Bernard Kushner (ph), is married to a woman in the news business.

(voice-over): Work aside relationships among Paris' power elite have been a bit complicated. Bruni Sarkozy (ph) married her husband after he divorced his second wife while in office. Francois Mitterrand, the last socialist president had a wife and a mistress, fathered children with both, even though Mitterrand ordered a cabinet official and a top aide to marry their girlfriends for protocol, but it seems times may have changed.

LAURENT-SIMON (through translator): I think the French public wants a revolution (ph) in opinion. A lot of couples in France live together, so does Hollande and Trierweiler though it does not shock anyone. A lot of French families are step families. The couple are at the head of a step family.

GORANI: France's first couple may never feel the need to marry, but then again, they haven't ruled it out.

Hala Gorani, CNN, Atlanta.

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BLITZER: This footnote, by the way, the new French president, Hollande also never married his first partner Segolene Royal (ph). She was the socialist presidential candidate five years ago. She lost to Sarkozy, the now former president of France. Hollande and Royal (ph), by the way, even though they never married, they had four children together. They're all grown and in their 20's right now.

Vladimir Putin says he won't attend a summit in Washington. Now President Obama says he won't attend a summit in Russia. Does this spell trouble for U.S.-Russian relations? What is going on?

And a woman drives 25 miles with the roof of her car torn half way off. If you want to know what happened to it, don't ask the driver. She had no idea anything was wrong.

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BLITZER: Who would have thought that the Charlotte, North Carolina -- that Charlotte, North Carolina could have such a big impact on global politics? The Democratic National Convention is scheduled to be in Charlotte in early September, but guess what? It's the exact same week when a major world summit is taking place in Russia. President Obama says he won't attend the global conference, a decision raising eyebrow in some corners around the world. Joining us now is our foreign affairs correspondent Jill Dougherty. Jill this isn't the only world summit snub that's causing some controversy, is it?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Exactly, Wolf. In fact you know we have this NATO summit coming up very shortly, in fact starting this weekend. And you know NATO summits used to be kind of a members-only club, but now that's changed because NATO is working with all sort of allies and many of them are invited to this NATO summit, then again, some aren't.

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DOUGHERTY (voice-over): NATO is scrambling to explain just who is coming to the party in Chicago.

ANDERS FOGH RASMUSSEN, NATO SECRETARY GENERAL: This special partnership event in which we will meet with partners that have contributed in a significant way to our operations --

DOUGHERTY: The summit planners have been in a tizzy over people who aren't even members like Russia's newly inaugurated President Vladimir Putin. He's not coming and he also told President Barack Obama no thanks for an invitation to attend the G8 meeting at Camp David on the eve of the NATO summit. His excuse, he's too busy putting together his new cabinet. Instead Mr. Putin is sending his prime minister, Dmitry Medvedev to bond with Mr. Obama, translation --

DAMON WILSON, ATLANTIC COUNCIL: It sends a signal, perhaps a signal of irritation with where things may be in the bilateral relationship, differences on missile defense, on Syria, recognition that not much is going to be done during election season, concern about the human rights legislation (INAUDIBLE) in the U.S. Congress.

DOUGHERTY: President Obama meanwhile said thanks, but no thanks to the APEC Summit that President Putin is hosting in Russia this September because the White House says it conflicts with the Democratic Convention. Another non-invitee to the NATO summit, Israel, Turkey at odds with Israel is taking credit for that, but --

UNIDENTIFIED MALE: Israel had never intended, never thought it would take part in the Chicago summit. However, the Turks publicly went out and did make a point of saying that they were blocking not only Israel activities with the alliance, but also Israel and NATO. It's just not true. DOUGHERTY: One more last-minute invitation is causing waves, too. Pakistan's President Zardari (ph) got one just as NATO is negotiating with his government to reopen communication lines Pakistan shut after NATO forces killed 24 Pakistani soldiers. President Zardari (ph) says he is still making up his mind on whether to attend.

(END VIDEOTAPE)

DOUGHERTY: And here's a footnote on that Obama-Putin meeting. They do plan on getting together on the sidelines of the G-20 summit that's going to be taking place in Mexico in June and that will be their first face-to-face meeting since Mr. Putin became Russia's president again -- Wolf.

BLITZER: I don't remember a time, Jill, I could be wrong, I covered the first Asia-Pacific Economic Cooperation Summit, the APEC summit, I don't remember a time when an American president has not attended. Do you know off the top of your head whether there has been an APEC Summit without an American president in attendance?

DOUGHERTY: Wolf, I think you're right on that and you know you can interpret it in many ways. President Obama says it's important to get to that -- to the Democratic Convention, but you could interpret it in another way, as perhaps a counter snub to the snub by President Putin.

BLITZER: Yes, they should have had it after the election in November. That's when they normally do it during an election year, but Putin thought the weather would be too rough in November. He wanted to do it in early September knowing it probably would result in President Obama's not coming and I think that's why Putin is not coming to Chicago. All right the tit-for-tat will continue.

Almost four pounds of weapons-grade uranium hidden in a U.S. basement, why Kodak could possibly need the nuclear material and you might not notice -- take a look at this next item -- you might not notice a small bump or scratch on your car, but don't you think you'd notice if it looked like this especially if you were the one driving that car?

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BLITZER: Almost four pounds of weapons-grade uranium hidden in a basement. We're not talking about Iran. We're talking about right here in the United States, and at the facility of the iconic camera company Kodak. CNN's Brian Todd is working the story for us. Kodak, nuclear, enriched uranium. What's going on?

BRIAN TODD, CNN CORRESPONDENT: Well they needed this highly enriched uranium, Wolf, to run in a machine that tested chemicals for impurities, tested film for impurities, other things like that. Kodak says it never posed a risk to anyone, but experts say it's very unusual for a private company to handle highly enriched uranium especially in this kind of a device.

(BEGIN VIDEOTAPE) TODD (voice-over): It was kept in a sub-basement cavity in an underground labyrinth near a place called Building 82 deep in the heart of a research complex. It was called the Californian Flux Multiplier (ph) or CFX (ph). About the size of a refrigerator it utilized highly enriched uranium the stuff nuclear bombs are made of. It wasn't at some arms factory in the old Soviet Union, but at Kodak. That's right, the company that brought us the instamatic camera and the Kodak moment (ph).

UNIDENTIFIED MALE: Only from Kodak.

ALBERT FILO, FORMER KODAK RESEARCH SCIENTIST: The walls surrounding it were two feet of enriched -- of enforced concrete. The ceiling over it was again two feet of concrete and then eight feet of earth, so it was really a well-shielded instrument.

TODD: Albert Filo was a scientist who worked with the device for 13 years at Kodak's research lab in Rochester, New York.

(on camera): The CFX was not a nuclear reactor. It produced neutrons that Kodak says were used to test chemicals and products like film for impurities. Kodak operated it for more than 30 years until it was disassembled in 2007. Kodak says it never intended to hide the CFX but the fact that the company was handling highly enriched uranium was never highly publicized.

FILO: As soon as you mention nuclear it sends up red flags and bells and whistles go off and people have a natural aversion to it. So they probably just didn't want to arouse the local neighborhood.

TODD (voice-over): Both Filo and a Kodak spokesman say the CFX was safe, that no radiation ever leaked out. That it was never in the concentrated form needed to make a weapon and that it was well secured. Still --

(on camera): We don't want Iran to have this material but it's OK for Kodak to have it?

EDWIN LYMAN, UNION OF CONCERNED SCIENTISTS: If you have enough highly enriched uranium you can use it to make a nuclear weapon. In smaller quantities it may be not enough, but you could always imagine an adversary that was coordinated could steal enough in different areas to kind of consolidate and have enough for a bomb.

TODD (voice-over): Kodak had about 3.5 pounds of highly enriched uranium at a time, well under the 45 pounds or so it takes to make a weapon. But a bomb that could severely damage a city doesn't have to be big.

(on camera): The scale is fairly modest. Not too much highly enriched uranium needed for a 10-kiloton bomb, right?

TODD: Just the uranium -- LARSEN: That's all you need, the highly enriched uranium, the, what we call the improvised nuclear device, the IND would fit in any minivan you see going down this street behind me.

(END VIDEOTAPE)

TODD: We have to point out Kodak is not the only non-government entity that's handled nuclear material. There are 31 research reactors in the U.S. Most of them are at universities but some private companies like DOW Chemical, GE, Hitachi and Aerotest (ph) have them, still the NRC says most of them use lower enriched fuel. The Nuclear Regulator Commission which monitored this for years, Wolf, says most of these other companies use lower enriched fuel for their devices. This was highly enriched uranium at Kodak.

BLITZER: I suspect my friends at Rochester had no idea this was going on.

CAFFERTY: Yes. The question this hour is should drones be used to spy on Americans. Don writes "I can't wait until the armed drones start flying around attacking U.S. citizens. I sure do feel safe in a post 9/11 society when the country's people who were attacked are now deemed suspicious and need to undergo unmanned air surveillance like the population is a constant threat to its own society, can't wait for the news. American drone kills American civilians. Defense Department says, sorry about the mishap."

James in Montana writes "The answer is no, Jack. But the sad fact is that it's probably already being done. I wonder how the government would react if I hired a private firm to bug their offices? Most of them would be jailed on the collected evidence."

Larry in Texas writes "Why not? There are several so-called Americans who want to destroy people. The Constitution says against all enemies foreign and domestic."

K. in Oklahoma writes "No, Obama is like big brother, always breathing down our necks. I'm beginning to feel like I live in the Soviet Union."

Pete in Florida writes "Ever since passage of the Patriot Act the government has been spying on American citizens. Our financial transactions, e-mails, phone calls, Internet use, the groups we join, our library activities, probably even our postings on "The Cafferty File", all usually without the benefit of either a court order or a warrant. Sure, add drones to the list. Apparently the majority is willing to give up freedom for the illusion of safety." Paul in Ontario writes "Security cameras have been used for years to watch for potential criminal activity. The only difference between those cameras and drones is that the drones are mobile, so why not use them?"

And H. writes "Does anyone get the feeling that we are living in a George Orwell novel?" If you want to read more about this go to the blog, CNN.com/CaffertyFile or through our post on THE SITUATION ROOM's Facebook page. They're watching you, Wolf.

BLITZER: I know. They're all watching us. All right Jack, thank you.

A woman shows up for work on time just like any other day but get this, she has no idea she just drove 25 miles in a car that looks like this.

(COMMERCIAL BREAK)

BLITZER: There are certain moments in life that are so intense, so exceptional they are etched in our memories forever, but this one wasn't. Here's CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): What's black and blue and has fur all over? A Canadian motorist who hit a moose, lost all memory of the accident, and drove the car like this 25 miles to arrive at work on time. Co-worker Cindy Paulson (ph) came running.

UNIDENTIFIED FEMALE: And I said, Michelle, what happened?

UNIDENTIFIED FEMALE: And I said nothing. And then she -- well she asked if I was OK and I said, yes, why wouldn't I be?

MOOS: Blood streaming down her swollen head.

UNIDENTIFIED FEMALE: And I said, Michelle, you were in an accident and she said, no, I wasn't.

MOOS: But when she turned and saw her car, the one she had just stepped out of --

UNIDENTIFIED FEMALE: I was devastated to see the state my car was in.

MOOS: Next stop, the hospital. Michelle Higgins has been recovering ever since from two broken bones in her neck and bruises galore.

(on camera): Did you actually have a hoof print on your face?

UNIDENTIFIED FEMALE: Right up there.

MOOS (voice-over): She calls it a scuff mark.

(on camera): But the moose looked worse than Michelle did. Police found it dead on the side of the road.

(voice-over): Michelle was driving from home to her job as a behavior therapist in Gander (ph), Newfoundland. She believes she rounded a bend on the Trans-Canada highway and struck the moose, peeling back the top of the car. Officials told her --

UNIDENTIFIED FEMALE: If I had been an inch taller they say that it would have took the top of my head off.

MOOS: She has no memory of driving the next 25 miles --

(on camera): Stopping at red lights and you're making lefts and rights and --

UNIDENTIFIED FEMALE: Exactly. Yes, I made two -- I made two lefts and a right.

MOOS (voice-over): Michelle says the memory loss really bothers her.

MICHELLE HIGGINS, CRASHED INTO MOOSE: I lost $5 a few years ago and that still drives me crazy wondering where it is. Now I lost my mind.

MOOS: Finally a pair of pedestrians came forward confirming they had seen her driving by.

UNIDENTIFIED FEMALE: There was a lady driving a car with no windshield.

MOOS: She may never go down memory lane with her moose but she's happy.

HIGGINS: I'm breathing and I'm walking.

MOOS (on camera): Michelle says there was moose fur all over the car, all over her clothes. Wow!

HIGGINS: Oh that was in my bag.

MOOS: In your purse?

HIGGINS: Yes.

MOOS (voice-over): Sadly for them both, Michelle bagged a moose.

Jeanne Moos, CNN --

UNIDENTIFIED FEMALE: You can take it out in handfuls.

MOOS: New York.

(END VIDEOTAPE)

BLITZER: At least she's OK. Thanks for joining us. I'm Wolf Blitzer in THE SITUATION ROOM. The news continues next on CNN.